MoviePass is taking a bold step by getting into movie distribution. The movie subscription service announced that its launching a new subdivision called MoviePass Ventures during the Sundance Film Festival.
MoviePass Wants To Bring New Movies To Theaters
The company made it clear that it wasn't at Sundance Film Festival to compete with film directors, but rather play alongside them to bring new movies to theaters for its paid subscribers.
"Given the successes we have demonstrated for our distributor partners in ensuring strong box office in the theatrical window, it's only natural for us to double down and want to play alongside them - and share in the upside," said Mitch Lowe, CEO of MoviePass.
MoviePass Launches Its Cheapest Monthly Subscription Plan
MoviePass launched its cheapest subscription plan to date, at $89.95 per year, back in November 2017. Though the plan included a processing fee of $6.55, new subscribers will end up paying around $7.00 for the monthly subscription plan.
By lowering the cost, MoviePass is giving moviegoers an opportunity to watch the movies they want to see at a cheaper cost, compared to the regular ticket price that costs between $13.00 to $15.00.
MoviePass Brings More Customers To The Movie Theaters
Within a month of changing its subscription price, MoviePass added an additional 500,000 paid subscribers, reaching a major milestone of 1.5 million.
The numbers alone show that MoviePass is attracting consumers back to the movie theaters by lowering movie ticket prices, which is an added bonus the movie industry.
AMC Theaters Takes Legal Action Against MoviePass
Though, some movie theaters haven't been thrilled with the idea of MoviePass lowering the costs of movie tickets. Soon after MoviePass announced its lowest monthly cost for its subscription-based service, AMC Theaters threatened to take legal action against the company. Why? AMC's stock dropped down to 2.57 percent at $13.25.
AMC stressed that MoviePass is not the best interest of movie theaters and movie studios. However, that's not preventing MoviePass from moving forward. By acquiring movies and partnering with film distributors, MoviePass is hoping to increase its revenue.
MoviePass also announced the company hired its first chief marketing officer, Natasha Mulla. She will be responsible for helping the company expand as the company continues to grow at rapid pace.